New Mexico just launched free child care: What families and providers need to know

On November 1, 2025, New Mexico made history as the first U.S. state to roll out universal, no-cost child care for all families. The revolutionary program changes how families pay for in-home and center-based care and how providers are reimbursed. Savings for families are expected to average thousands of dollars per child per year.

“Child care is essential to family stability, workforce participation and New Mexico’s future prosperity,” New Mexico Governor Michelle Lujan Grisham said in a press release. “By investing in universal child care, we are giving families financial relief, supporting our economy and ensuring that every child has the opportunity to grow and thrive.”

Whether you’re hiring a child care provider or are a provider yourself, here’s what’s changing in New Mexico, how it’s going to work and how this inspiring program could impact the future of child care nationwide.

What the child care program in New Mexico changes — and why it matters

Under the new child care rules in New Mexico, families with kids under age 13 will pay nothing for licensed or registered child care, regardless of their income. Instead, the state will reimburse licensed or registered child care providers directly, saving families an average of $12,000 per child each year. 

There are some other exciting changes, as well:

• No activity requirements. Families will be eligible for free care even if they are not working or in school. This includes:
  • Families involved with the New Mexico Children,Youth & Families Department (CYFD) or Comprehensive Addiction and Recovery Act (CARA).
  • Families experiencing housing instability.
  • Grandparents raising grandchildren.
• Increased flexibility. Families can take advantage of full-time, part-time or “wraparound” (Head Start, New Mexico PreK and care for school age kids during summer and breaks) care.
• Better pay for providers. Providers will be paid in advance of services offered, given special benefits for paying employees a living wage and have access to additional grants and loans for expansion. (More on this below!)
• No increased state taxes. New Mexico’s child care program is funded by a voter-approved constitutional amendment granting the use of a portion of New Mexico’s Land Grant Permanent Fund, as well as revenue surpluses from oil and natural gas in the state.

The expanded universal child care program in New Mexico builds on previous efforts in the state to reduce the burden of child care costs. Since 2019, New Mexico’s governor and legislature have worked together to create both the Early Childhood Education and Care Department (ECECD) and the Early Childhood Trust Fund, organizations aimed at increasing provider pay and providing no-cost child care for families with incomes at or below 400% of the federal poverty level (about $124,000 for a family of four).

Between 2021 and 2024, this broader access to affordable child care lifted an estimated 120,000 New Mexico residents above the poverty line, particularly single mothers and low-income families. Now, more families statewide will be able to reap the benefits.

The move to this type of universal care program benefits both families and providers in major ways, says Kimberly Krzanowski, a veteran early child educator and the executive director of The Early Childhood Innovation Center at Delaware State University who holds her doctorate in educational leadership. “Universal child care creates consistent slots for children in high quality early learning programs, and it creates a stable payment system that providers can rely on due to the state financially supporting the programs,” she explains.

Quick facts about universal child care in New Mexico

• Effective date: Nov. 1, 2025.
• Who qualifies: All families with kids in New Mexico, regardless of income.
• Age range covered: Birth to age 13.
• Funding source: The New Mexico Early Childhood Trust Fund, supported by the New Mexico Land Grant Permanent Fund and a revenue surplus.
• Provider supports: Higher reimbursement rates, wage supplement programs and facility-expansion loan funds.

How New Mexico families can access free child care

Enrollment for universal child care started on November 1. New Mexico residents can enroll via the state’s Early Childhood Education and Care Department (ECECD) website. Here’s what you’ll need:

• Proof of residency (current driver’s license, lease, mortgage or utility bill).
• Birth verification for all children in the household.
• Photo I.D. for applicant.
• Verification of school or training schedule for adults (if applicable).

Which child care providers are included?

Under the new rules, you will continue to select your provider, and you can stay with providers you already know and love. New Mexico’s universal child care program includes:

• Child care centers.
• Home-based child care providers.
• Before- and after-school programs.
• Summer programs. 

Note: All programs and providers must be licensed or registered by ECECD in order to be eligible. If you’re a New Mexico resident paying out of pocket for child care, ask your provider if they accept payments from ECECD before applying.

What if you’re already enrolled in free child care?

If you already have an active New Mexico child care assistance contract, you don’t need to reapply for universal child care, according to the ECECD. If you previously applied and were denied based on income, you’re welcome to reapply since income requirements no longer apply.

What if you don’t have a child care provider yet?

If you don’t already have a child care provider, you can use the ECECD’s online Child Care Finder to search more than 1,000 qualified programs by location, quality level, hours of operation, age and language. Once you select a provider, complete the application and your child starts care, your benefits will begin.

What if you aren’t a U.S. citizen?

Previously, children had to be U.S. citizens, legal residents or qualified immigrants to qualify for free child care. A representative for the ECECD tells Care.com all children are now eligible to receive child care assistance, including those who are not U.S. citizens or do not have a federally qualifying immigration status.

“By investing in universal child care, we are giving families financial relief, supporting our economy and ensuring that every child has the opportunity to grow and thrive.”

— New Mexico Governor Michelle Lujan Grisham

What’s changing for child care providers in New Mexico? 

Since New Mexico was already offering universal child care to a number of families, many providers are already a part of the program; however, there are some new benefits and supports to know about. Here’s a quick rundown.

Higher reimbursement rates and faster pay

Under the old rules, providers were reimbursed for child care in the month following service delivery. Now, they’re going to be paid ahead of time — and rates are going up.

Beginning in 2026, the EDECD will transition to paying providers in advance of child care services. “Child care providers can count on steady reimbursement without billing families or collecting copayments, which will strengthen their business models and improve the quality of care statewide,” the ECECD explains in a fact sheet provided to Care.com.

Payment rates vary based on the setting, child’s age and whether you provide full- or part-time care, but here’s a quick snapshot of rates for licensed child care centers so you can get a feel for the changes.

Reimbursement rates* for licensed New Mexico child care centers

Care Type	2025 Reimbursement Rate	2026 Reimbursement Rate
Infant full-time	$1,075/month	$1,200/month
Toddler full-time	$775/month	$875/month
Pre-school full-time	$700/month	$735/month
School-age full-time	$500/month	$689/month

*Based on recorded rates for amendment 8.9.3 to New Mexico Administrative Code (NMAC), Section 6 through 22, effective 11/04/2025.

Estimated payment rates for all care types can be found here (see section 8.9.3.17 on pages 17-22). You can also use the ECECD’s cost model calculator to estimate your individual rates.

More expansion opportunities

If more kids need child care, then the state needs more child care spots. Here are the supports New Mexico is putting in place to help child care providers expand, hire and meet growing demand:

• Low-interest loans for construction, expansion and renovation of licensed child care facilities.
• Free coaching and training to strengthen business practices.
• Priority funds and grants for providers serving infants and toddlers, low-income families and children with special needs.
• Additional funding for providers who pay entry-level staff at least $16-$19 per hour and stay open at least 10 hours per day, five days a week.

In addition to these changes, the ECECD is also making efforts to reduce administrative barriers, including making it easier to register as a home-based care provider and launching a custom data system for all providers to track compensation, credentials and staff retention.

“There is a real opportunity to recruit an educated and qualified workforce with this groundbreaking policy decision in New Mexico.”

— Kimberly Krzanowski, veteran early child educator

How do providers enroll in universal child care?

Child care providers in New Mexico choose whether or not to accept child care assistance when they complete the licensure or registration process with ECECD. If you already registered and accepted assistance, you’re all set.

If you’re a provider and chose not to accept child care assistance at the time of registration, you can contact the Child Care Services Bureau at 1-800-832-1321 or child.care@state.nm.us to change your selection.

For more information, you can register to attend one of several free informational sessions called Universal Child Care Office Hours provided by the ECECD.

How do nannies and babysitters get paid?

Private nannies are not eligible to have their salary reimbursed through the universal child care program, a representative for the ECECD clarifies. “To be paid by the state, you must be a licensed or registered child care provider with ECECD,” they add.

That said, in-home provider registration isn’t limited to in-home daycares. In-home care providers can register with ECECD if they complete the required paperwork and:

• Care for no more than four non-resident children in their own home.
• Get a background check.
• Pass state health and safety inspections.
• Participate in the Child and Adult Care Food Program (CACFP).
• Complete training and technical assistance with state Child Care Specialists.

Once you register as a home provider, families can apply for child care assistance online and the ECECD will send child care assistance payments directly to the family’s approved child care provider.

Possible hurdles for New Mexico families hiring child care providers

For many families, child care costs are going to drop to zero, freeing up thousands for savings or other uses. But critics of universal child care point out that New Mexico isn’t quite ready to meet the growing demand for care. 

While care is free, slots are still limited, and families may face waitlists or be unable to access the care they need until supply catches up. According to the ECECD’s own data, New Mexico needs to be able to support 12,000 more children in child care. To do so, the state will need about 5,000 more providers and the following:

• At least 55 new licensed child care centers.
• At least 120 new licensed in-home child carers.
• At least 1,000 new registered home providers.

Child care industry leaders in New Mexico are already stepping up to grow child care capacity, the ECECD reports. And the new expansion loans, grants and incentives being offered are designed specifically to help create more spots for kids.

“The lessons learned from New Mexico start with doing what is best for children. Children and families thrive when they have access to high quality early childhood education programs and educators.”

— Kimberly Krzanowski

Though it will be a challenge to meet demand, Krzanowski says it’s also an incredible chance to improve the entire care landscape. Not only does access to reliable child care allow more parents, especially moms, to remain in or join the workforce, but it also creates incentives to invest in skilled early childhood professionals.

“There is a real opportunity to recruit an educated and qualified workforce with this groundbreaking policy decision in New Mexico,” she explains.

What will New Mexico’s program mean for child care in other states?

New Mexico is the first state to implement universal free child care, and it’s a sure bet that leaders in other states will be watching to see how it works out. Not only that, but the popularity and structure of the program could inspire many copycats.

“The lessons learned from New Mexico start with doing what is best for children,” Krzanowski explains. “Children and families thrive when they have access to high quality early childhood education programs and educators.”

The average parent spends 40% of their household income on care costs, according to the Care.com 2025 Cost of Care report. And despite the exorbitant cost of care, many providers nationwide are still underpaid and struggling to make ends meet. As a result, the majority of parents support child care reforms, and some states and cities are already on the right track. 

So far, Connecticut has established an Early Childhood Education Endowment to create universal preschool by 2032. Vermont provides financial assistance for some families and minimum pay standards for child care workers. And, in Multnomah County, Oregon, about 3,800 families have access to universal preschool this school year. 

While these programs come with challenges, the example New Mexico is offering shows Americans that it’s worth the effort and could create real, lasting benefits for the entire country, explains Krzanowski.

As Krzanowski concludes, “The statement New Mexico made to the nation is that early childhood matters and was prioritized in policy and funding. Yes, there are many logistics to work out, but New Mexico has opened the door and said we are ready to make this a national example, no matter what.”